Russia ‘optimistic’ over Opec oil output deal
doha — Russia’s energy minister said on Friday he was “quite optimistic” the Opec will reach an agreement later this month on a planned output cut to shore up prices.
Alexander Novak was speaking after informal talks in Doha with some but not all of his Opec counterparts ahead of the cartel’s meeting in Vienna on No- vember 30.
The group’s 14 members have been at odds over the details of the production cut agreed in Algiers in September, which is supposed to lead to a wider agreement with non-Opec producers including Russia.
Iran has refused to join in until it has restored its market share following the lifting of international sanctions in January.
Iraq has asked for an exemption, saying it needs the income to fund its war against militants.
Asked whether he thought Iraq would agree to a freeze or cut at the Vienna meeting, Novak said: “I would say that I am quite optimistic at this point.
“Today’s discussions... do instil optimism in me.”
“And I believe that the consultations of technical experts, which are going to be held soon, and other consultations ahead of the November 30 meeting... would result in an agreement.” He also told reporters that Russia was willing to limit production to “certain levels”.
“We believe that demand will continue to grow. Even today we have discussed numbers that demand will grow by 1.1, 1.2 million bpd next year.
“If we jointly with the Opec can stabilise production and not add to supply then, yes, we believe this will be a very significant step of rebalancing the market.”
Saudi oil minister Khalid Al Falih also attended Friday’s meeting but made no comment as he left and instead gave a thumbs-up sign to reporters.
Opec ministers agreed in Algiers to reduce production to 32.5-33 million bpd from the 33.47 million pumped in August, the first cut in eight years. —
hong kong/london — Oil declined for a third day, trimming the first weekly advance since late October, as some Opec ministers held talks with Russia aimed at clinching an accord to stabilise markets.
Futures declined as much as 1.9 per cent in New York. While Saudi Arabian Energy Minister Khalid Al Falih told Al Arabiya television he’s optimistic a deal will be reached on November 30, only seven of 20 analysts surveyed by Bloomberg this week expect the Opec to set its members the production targets needed to make an agreement work.
Oil has retreated since reaching a 2016 high last month near $52 a barrel amid scepticism about the ability of the Opec to implement the deal agreed on September 28 in Algiers. The group is seeking to trim output for the first time in eight years, a plan complicated by Iran’s commitment to boost production and Iraq’s request for an exemption to help fund its war with militants.
“Behind the upbeat headlines, there still lies a distinct lack of unity within the organisation,” said Stephen Brennock, an analyst at PVM Oil Associates. “Iranian and Iraqi intransigence to the proposed output cuts remains in full force.” — Bloomberg